Deficit as a proportion of GDP was 2.0% in 2017
The deficit of the general government sector in 2017 was HUF 746.3 billion, 2.0% of GDP, according to preliminary data. The balance deteriorated by HUF 156.9 billion, or by 0.3 percentage points as a proportion of GDP compared to 2016. The deficit growth was due to a larger increase in expenditures than in revenues.
HCSO reported the data to Eurostat, the Statistical Office of the EU, in compliance with the regulation on Excessive Deficit Procedure (EDP), according to the methodological requirements included in the European System of Accounts (ESA 2010). The deficit of the general government sector was HUF 746.3 billion – without Eximbank 754.4 billion, – both values representing 2.0% of GDP. The debt of the general government sector – based on data of the National Bank of Hungary – was HUF 28,096 billion, 73.6% of GDP at the end of 2017; without Eximbank HUF 27,360 billion, 71.7% of GDP.
In 2017 compared to 2016:
General government sector’s revenue was HUF 17,008.4 billion and its expenditure HUF 17,754.7 billion.
Revenues grew by HUF 1,115.6 billion or by 7.0%. Taxes on production increased by HUF 458.1 billion (by 7.1%), within which VAT revenues rose by HUF 328.0 billion (by 9.9%). Revenues from taxes on income were HUF 203.4 billion (7.7%) higher than a year earlier. Social contributions increased by HUF 76.6 billion (by 1.6%). Other revenues went up by HUF 375.9 billion or by 18.7%, mainly as a result of a significant growth in EU transfers.
Expenditures increased by HUF 1,272.4 billion or by 7.7%. The growth in the case of paid compensation of employees was HUF 271.0 billion (7.0%) and regarding social benefits other than social transfers in kind HUF 140.5 billion (3.1%). Gross fixed capital formation went up by HUF 591.0 billion (by 53.9%) and intermediate consumption by HUF 266.0 billion (by 10.8%). Other expenditures increased by HUF 78.7 billion (by 2.3%). At the same time interest expenditures of the general government sector lowered by HUF 74.8 billion (by –6.5%).
In the 4th quarter of 2017 compared to the same period of 2016:
The deficit of the general government sector was HUF 619.4 billion, representing 6.3% of GDP; HUF 161.5 billion or 2.4 percentage points more favourable than one year earlier.
Revenues increased by HUF 456.1 billion or by 10.4%.
Expenditures were HUF 294.6 billion (5.7%) higher than a year earlier.